Copy Trading for 2020

We found 10 online brokers that are appropriate for Trading Copy Brokers.

Copy Trading Brokers Guide

Copy Trading

Many traders use the popular feature copy trading when trading the financial markets.

Copy trading allows traders to benefit from the expertise of proffesional traders and copy their trades.

This allows for greater chance of profitable investment strategies, instead of investments that fall into losses.

The copy trading portfolio management software finds other investors and traders who have a good track record of profitability in their trades.

Traders are able to monitor the strategies of experts and implement the same trades facilitated by copy trading brokerage platforms.

Copy trading is mainly beneficial to traders who have less time to follow market trends and are interested in short term trading.

You can see the UK's Financial Conduct Authority defines copy trading here [Source].

Copy Trading History

Copy trading in financial markets was established in 2005 and then just specific algorithms were developed and used.

Now, developers share investment track records, giving other traders access to copy them.

Copy Trading and Mirror Trading Differences

Mirror trading and Copy Trading seem the same. They are both good examples of social trading. We outline the some of the differences below.

Institutional and Retail Clients

Mirror trader is an advanced trading platform which was originally available only to institutional clients. Institutional clients are organizations that trade securites and assets in huge volume.

Retail clients are not defined as professional by the Financial Conduct Authority and typically invest smaller amounts than institutional investors.

Trading Strategies

Mirror Trader trading strategies can be based on hundreds of thousands of professional traders. Mirror Trader offers more indepth Macro economic data which is why more advanced traders choose Mirror Trading over Copy Trading.

Copy Trading strategies that you follow are based on an individual traders strategy on the platform.

Trading Volumes

Retail investors usually trade in lots of 100 shares or assets but intuitional investors usually trading on behalf of clients or members buy shares and assets in at least blocks of 10,000. This is why Copy Trading is more suited to retail investors who will most like be trading in smaller volume.

How They Work

Traders on Copy Trading platforms set a percentage of deposited funds which are used to copy the trades of an individual trader, found on the Copy Trading platform. The Copy Trading platform takes over from there and will blindly copy the trades of the selected expert trader.

Mirror Trader platforms differ slightly in their approach to copying a trading strategy.

Traders are asked a few questions within the Mirror Trader platform like types of preferred trades and asset classes, financial markets risk tolerance, and investment goals. Mirror trader will then offer a selection of general strategies from a range top professional traders rather than absolute duplication of trades of a single individual trader as would be the case with Copy Trading.

Growth of Copy Trading

Copy trading was devised in 2005 with the aim of taking the Mirror Trading principles of copying trading strategies and making it more accessible to a wider range of smaller scale often beginner retail traders. Before Copy Trading the barrier to entry was high. Costs, time constraints and access to information was not available to all investors.

The growth of the internet and advancements in mobile and desktop technology meant that in 2005 and onwards there was a new market for Copy Trading as online trading platforms became more wide spread.

Before 2005 to following a professional traders investment strategies was expensive and not accessible to all.

Copy Trading VS Mirror Trading

We have summarized some Copy Trading and Mirror Trading differences in the table below so you can compare the two side by side.

 
Copy Trading
Mirror Trading
Aimed at Small scale individual investors often beginners Large scale organisations
Assets Traded Most asset classes are available on Copy Trading platforms including Stocks, ETFs, Currency Pairs, Indices and Commodities. Stock and Forex Markets although more common in Forex markets.
Trading Volume 100 shares or other assets on average per trade 10000 blocks of shares or other assets per trade
Capital needed Small - depending on the broker and your country Currencies, commodities and indices can be traded with a minimum order size of $1000, ETFs $500, Stocks $50, and Cryptocurrencies $25. [Source] Very Large - Hundreds of thousands if not millions of dollars depending on the asset.
Average number of traders copied 2 100+
Account monitoring Easier due to fewer copied traders It can be difficult to keep up with activity on a Mirror Trading account due to the volume of copied trades and amount of money going in and out of the account.
Trader Research Easy - Copy trading platforms summarize copied traders portfolios, portfolios and trading histories. You can read updates and communicate with other traders. Its very easy on a Copy Trading platform to find traders with a high ROI. The Mirror trader offers historical trade information but the platform offers no social interaction with other traders or strategy providers.
Best for Beginners, Time constrained traders, Expert traders Technically knowledgeable investors, Global Macro Investors, Expert traders with many years of experience.

Why Copy Trading?

Copy trading allows copying positions of another trader and lately it has become more popular. There are several traders who create 'People-Based' portfolios to invest in other investors instead of trading themselves.

Here are some reasons worth discussing why copy trading is becoming popular:

Time Saving

Copy trading saves time compared to manually trading. Traders who have less time to devote in the financial market find it as a blessing.

Education

For beginners copy trading is the best way to learn. It helps in learning the strategies of expert traders. One can raise questions and read why certain trade was implemented.

Access to Global Markets

Traders have limitations. It is not possible to become an expert in all the markets in the world. With the help of copy trading software, you don't remain betrayed by any financial market. You get exposure to global markets and gain a global knowledge base as well.

Diversification

Diversification portfolio leads to less risk and copy trading is one of the best ways to do so. With it, you can copy trades of several investors and earn a handsome income month after month. Doing without tools is impossible and even an experienced trader recommends copying in today's financial scenario.

Copy Trading Risks

Market risk is the primary concern in copy trading as the price can change anytime. However, the loss can be protected by making use of an asset allocation strategy.

With asset allocation strategies the funds are diversified and allocated into several investment strategies.

Systematic Risk

Currencies of emerging markets are usually exposed to systematic risks.

Money may get locked up and traders may fail to exit the positions.

Market Liquidity with Copy Trading

Liquidity is another risk factor in copy trading.

With copy trading traders cannot leave their positions at certain expected levels. The copy trading algorithm will continue just as the expert trading did that the copy trade is mimicking

Historical precedence is followed and the maximum historical draw down of the expert trader is copied.

Copy Trading Advantages

With copy trading, traders find other investors and follow their investment strategies to make money.

This is perfect for those who are busy and have almost no time to monitor the markets personally.

The strategies of expert investors are used to generate revenue with copy trading. However, it is suggested not to blindly follow the strategies and risk real capital blindly.

Copy Trading Verdict

Copying trades of another trader is like benefiting from the performance of professional traders who have much more knowledge and experience than the average trader.

Copy trading is usually done automatically through well designed software tools used by brokerage trading platforms.

Some brokers even offer a manual copy trading action to execute the trades.

Be aware that copy trading carries risk as with any investment.

The three primary rules with copy trading are market risk, liquidity risk and systematic risk.

Best Way to Begin Copy Trading

Copy trading is one of the best ways to begin your career in the financial market. It helps in reducing risks and magnifying profits.

The first thing to do if you are new to trading is to open multiple demo accounts with multiple regulated copy trading brokers. This will allow you to experience the varying broker platforms. With a demo account you trade with virtual money and lose nothing while learning and gaining experience of the market.

Once you are confident to trade with real money, as your broker to open a live account.

Copy trading benefits who are new to financial markets or want to minimize losses by mimicking someone else’s trade.

The knowledge and experience of expert traders are utilized to increase the probability of making a profit.

Most modern brokerages offer copy trading to clients through specific investment tools on their trading platforms. Copy trading tools are transparent and open. Historical trading records of experts can be analysed and usually low risk investment strategies are followed with copy trades.

Copy Trading And Other Fintech Statistics

In 2015 data showed that over 190 million Euro of total traded assets were traded with the use of copy trading, according to data from the Publications Office of the European Union [Source].

A March 2020 report from the European Central Bank on financial integration and structure in the Euro area highlights that 20% of all fintech entities in the EU are comprised of Copy Trading platforms, Robo-advise, Personal financial management and trading platforms. Data from the European Central Bank shows this is up on previous years. [Source]

Trading Histories of Available Traders

Verify the account and find traders by clicking on the ‘Copy People’ tab. Some traders will be featured here while you can find others from the search option.

The screen shot from copy trading broker eToro below shows you how copy trading brokers allow you to view summary profiles of expert traders based on attributes such as Editors Choice, Top Investors, Trending, Most Copied, Lower risk score and Medium risk score.

You can filter traders by country, what type of market they invest in currencies, indices, stocks, ETFs, Crypto for example. Most copy trading platforms also allow you to filter to show traders by percentage of gains over a set period.

Copy trading trader profiles can be further refined with the advanced search filter. Filter traders by time period, profile, social, performance, risk, portfolio and activity. We list these features below :

Once you click through to a trader profile you will be able to see that trader's historical performance and statistics in more detail.

Copy trading platforms allow you to check how many followers and copiers each trader has. You can view the top traded assets of that trader with live feed price data.

You can read updates and send messages and exchange notes as part of a community with copy trading platforms.

You can see the number of total trades and the percentage of trades that were profitable. The trading is broken down into percentage of stocks, currencies, indices, crypto, ETFs, Commodities.

Additional stats include number of trades per week, average holding time, date trader has been active since, and number of profitable weeks.

After you find traders that match your investment strategy you will need to fund your account to begin trading. Your account will thereafter automatically copy trades of your chosen trader.

It is important to note here that not all the traders earn money by copy trading. Copy trading is not risk free as with any investment.

Copy Trading Research

Copy trading is not perfect and you should be aware of the risks before trading.

A study published on the Harvard.edu website reveals people are risk-averse during gains and risk-seeking during losses.

This is called the reflection effect and proves that traders are more sensitive to losses compared to gains. The journal has compiled the research into a thesis called 'Prospect Theory' [Source].

Another study by Barcelona GSE Graduate School of Economics suggests copy trading provides an institutionalized framework for imitation, which may cause traders to undertake increased risk when copying trader then they would if they had traded on their own.

Traders should be aware high returns can sometimes result in high losses [Source].

Copy trading is a great addition to a traders investment strategy, but make sure you pick a well regulated copy trading broker and trading platform.

Read this bulletin from the US Securities and Exchange Commission updated April 03 2019 [Source].

We've collected thousands of datapoints and written a guide to help you find the best Copy Trading for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best Copy Trading Brokers below. You can go straight to the broker list here.

Reputable Copy Trading Brokers Checklist

There are a number of important factors to consider when picking an online Copy Trading Brokers trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering Copy Trading Brokers.

We compare these features to make it easier for you to make a more informed choice.

Top 15 Copy Trading Brokers of 2020 compared

Here are the top Copy Trading Brokers.

Compare Copy Trading Brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are Copy Trading Brokers. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more Copy Trading Brokers that accept Copy Trading Brokers clients

Broker eToro IC Markets Pepperstone FXPrimus AvaTrade Axitrader Swissquote forexmart phoenixmarkets ezinvest
Rating
Regulation Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217 Cyprus Securities and Exchange Commission (CySEC), The markets in financial instruments directive (MiFID) Central Bank of Ireland, Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI) Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA) Financial Conduct Authority (FCA) Cyprus Securities and Exchange Commission (CySEC) Cyprus Securities and Exchange Commission (CySEC) Cyprus Securities and Exchange Commission (CySEC)
Min Deposit 200 200 200 100 250 No minimum deposit 1000 1 500 500
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 12,000,000+ 60,000+ 10,000+ 10,000+ 200,000+ 10,000+ 300,000+ 10,000+ 10,000+ 10,000+
Benefits
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Offers STP
  • Allows scalping
  • Offers STP
Accounts
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • Raw Spread account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
  • Managed account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms Web Trader, Tablet & Mobile apps MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps MT4, Mac, ZuluTrade, Web Trader, Tablet & Mobile apps MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps MT4,WEB,desktop MT4,mac,Android.iPhone/iPad MT4,mac,Android.iPhone/iPad
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
etoro
Sign Up with
icmarkets
Sign Up with
pepperstone
Sign Up with
fxprimus
Sign Up with
avatrade
Sign Up with
axitrader
Sign Up with
swissquote
Sign Up with
forexmart
Sign Up with
phoenixmarkets
Sign Up with
ezinvest
Risk Warning 75% of retail investor accounts lose money when trading CFDs with this provider. Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money Losses can exceed deposits 79% of retail investor accounts lose money when trading CFDs with this provider Losses can exceed deposits Losses can exceed deposits Your capital is at risk Your capital is at risk Your capital is at risk
Demo eToro
Demo
IC Markets
Demo
Pepperstone
Demo
FXPrimus
Demo
AvaTrade
Demo
Axitrader
Demo
Swissquote
Demo
ForexMart
Demo
Phoenix Markets
Demo
EZINVEST
Demo
Excluded Countries US, IR, KP, BE, CA, JP, SY, TR, IL, HK AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA BR, KR, IR, IQ, SY, JP, US AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. BE, BR, KP, NZ, TR, US, CA, SG US, JP US BE, CA, IR, JP, KP, US, BA, ET, IQ, UG, VU, YE, AF, LA, TR, SY, IL BE, CA, IR, JP, KP, US, BA, ET, IQ, UG, VU, YE, AF, LA, TR, SY, IL

All Copy Trading Brokers in more detail

You can compare Copy Trading Brokers ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

We also have an indepth Top Copy Trading Brokers for 2020 article further below. You can see it now by clicking here

We have listed top Copy Trading Brokers below.

Copy Trading Brokers List

eToro
(4/5)
Min deposit : 200
eToro was established in 2006 and is used by over 12000000+ traders. 75% of retail investor accounts lose money when trading CFDs with this provider. eToro offers Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC)
IC Markets
(4/5)
Min deposit : 200
IC Markets was established in 2007 and is used by over 60000+ traders. Losses can exceed deposits IC Markets offers Forex, CFDs, Spread Betting, Share dealing, Cryptocurrencies

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC)
Pepperstone
(4/5)
Min deposit : 200
Pepperstone was established in 2010 and is used by over 10000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money Pepperstone offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217
FXPrimus
(4/5)
Min deposit : 100
FXPrimus was established in 2009 and is used by over 10000+ traders. Losses can exceed deposits FXPrimus offers Forex, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), The markets in financial instruments directive (MiFID)
AvaTrade
(4/5)
Min deposit : 250
AvaTrade was established in 2006 and is used by over 200000+ traders. 79% of retail investor accounts lose money when trading CFDs with this provider AvaTrade offers Forex, CFDs, Spread Betting, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Central Bank of Ireland, Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI)
Axitrader
(4/5)
Min deposit : 0
Axitrader was established in 2007 and is used by over 10000+ traders. Losses can exceed deposits Axitrader offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA)
Swissquote
(4/5)
Min deposit : 1000
Swissquote was established in 1999 and is used by over 300000+ traders. Losses can exceed deposits Swissquote offers Forex, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
forexmart
(4/5)
Min deposit : 1
ForexMart was established in 2015 and is used by over 10000+ traders. Your capital is at risk ForexMart offers Forex trading, CFD trading, Social trading, Share Dealing, Crypocurrency trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,WEB,desktop

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
phoenixmarkets
(3/5)
Min deposit : 500
Phoenix Markets was established in 2013 and is used by over 10000+ traders. Your capital is at risk Phoenix Markets offers Forex trading, CFD trading, Spread Betting, Social trading, Share Dealing

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,mac,Android.iPhone/iPad

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
ezinvest
(3/5)
Min deposit : 500
EZINVEST was established in 2008 and is used by over 10000+ traders. Your capital is at risk EZINVEST offers Forex trading, CFD trading, Spread Betting, Social trading, Share Dealing

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,mac,Android.iPhone/iPad

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)